Finance

Factbox- Harsh words, tough action: How companies have rebuffed Russia


Oil company BP’s decision to sell out of Russia at a cost of as much as $25 billion was a shock for an industry that has worked very closely with Russia.

Corporate actions to censure Russia after its invasion of Ukraine vary widely and include some measures required by law and some voluntary, with comments ranging from harsh condemnations to more measured promises to review business in the country.

Here are some actions by large multi-national companies:

LEAVING RUSSIA
Energy companies led by BP, Shell and Exxon Mobil are promising to sell Russia stakes and exit the country. Among many others, Accenture, with 2,300 employees in Russia, said it would discontinue business and Mercedes-Benz Group said it plans to spin off its stake in Russia’s Kamaz.

HALTED SERVICES
Boeing has cut sales and support for aircraft, saying it was and would follow U.S. sanctions. Washington’s export rules were changed to clamp down particularly on technology that could be used by the military, affecting a broad swath of industry, such as PC maker Dell Technologies, which has stopped sales to Russia. Russia has banned Western airlines from Russian space.
United Parcel Service Inc and FedEx Corp, two of the world’s largest logistics companies, halted delivery service to Russia and Ukraine.
Travel booking software provider Sabre Corp said it has terminated its distribution agreement with Aeroflot , hurting the Russian flag carrier’s ability to sell tickets.

CLOSED AND OPENED STORES
Clothing retailer H&M, car companies including GM and BMW, as well as spirits maker Diageo and motorcycle maker Harley Davidson, are among global companies that are not selling. Most are not exporting goods to Russia, which would be difficult given decisions by shipping companies to drop Russian service. Nike and IKEA, a Swedish furniture retailer with a chain in Russia, are temporarily closing their stores.

Spanish fashion retailer Inditex, owner of the Zara brand, also said it had halted trading in Russia, closing its 502 shops and stopping online sales.
By contrast, restaurateurs Burger King and Papa John’s underscored that the restaurants flying their flags in Russia were owned by local businesses. “We do not have plans to ask the independent franchisee who owns and operates Papa Johns stores in Russia to close their stores,” the pizza maker said.

HALTED PRODUCTION
Ford has discontinued operations, but its joint venture partner still has a factory in the country. Many other automakers, including France’s Renault and Japan’s Toyota Motor Corp, have described shutting local manufacturing, some noting a lack of supplies.

HARSH WORDS
Many major global brands are using rarely heard corporate language that clearly blame Russia for attacking Ukraine. Apple and Ford used very similar language to describe deep concern about the invasion of Russia. Occidental Petroleum Chief Executive Vicki Hollub labeled the invasion “insane and inhumane” in comments made a day after the invasion.

SHOCK ACTIONS
Oil company BP’s decision to sell out of Russia at a cost of as much as $25 billion was a shock for an industry that has worked very closely with Russia. Condemnations by Apple and Disney were unusual.

ON THE SIDELINES
Many commodity traders such as Cargill are not saying much. Big consumer brands include Nestle, Procter & Gamble , Pepsi, and Oreo-cookie maker Mondelez have yet to comment on the status of their operations in Russia.
McDonald’s Corp, which has 847 restaurants in Russia, 84% of which are company-owned, has not commented on its operations.


Checkout latest world news below links :
World News || Latest News || U.S. News

Source link

Back to top button